Iran set ambitions to increase oil production next year – Business News

Iran set ambitions to increase oil production next year – Business News

Iran said it planned to produce nearly twice as much oil next year, as the country lowered fears of US sanctions after Joey Biden became president.

Oil Minister Bijan Namdar Zanganeh told lawmakers on Saturday that the government aims to pump 4.5 million barrels a day of government oil and gas condensate, which will be used for natural gas, during the next Iranian calendar year beginning on March 21. Is a liquid form. Republic News Agency report.

Zanganeh also said that Iran would increase oil exports by 2.3 million barrels per day, the IRNA reported, citing Zafar Qadri, who sits on the Budgetary Affairs Commission.

Iran’s oil production has been limited to around 1.9 million barrels by US President Donald Trump since its withdrawal from the nuclear deal with the Islamic Republic in 2018 and tightening sanctions.

According to data compiled by Bloomberg, exports fell as high as 2.6 million barrels in a single day three years ago to just 133,000. Almost all Iranian ships go to China.

Excess exports from Iran will cause problems for OPEC +, which is trying to keep output and bolster prices down due to the coronovirus epidemic. While Iran is an OPEC + member, the cartel has exempted it from production cuts due to sanctions and its economic hardship.

Biden, who was sworn in as president on January 20, has indicated that he wants to bring Iran back to an agreement when he was vice-president under Barack Obama.

Nevertheless, some traders doubt that Washington would be willing to allow more Iranian exports when oil demand is constrained by the virus.

Mike Muller, head of Asia for the world’s largest independent oil trader Vitol, said in an interview on Sunday in 2021, “I’m not from the point of view that we’re going to see too much Iranian oil in the market”. Advisor Gulf Intelligence.

“It’s not just a priority” for the US to reduce sanctions, he said, “until the core principles are so tight that the market calls for it and feels right to do so.”

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